INTRODUCTION

In developing a new strategic plan for looking towards the new century, the ABC Foundation (a pseudonym) stated that its greatest asset is the vast amount of information and knowledge it has to share. As such, knowledge management and knowledge sharing are major commitments for the coming years for the Foundation. One of the reasons for engaging in knowledge management is to increase innovation, thereby contributing towards becoming an innovating, learning organization. Innovative efforts include the search for and the discovery, experimentation, and development of new technologies, new products and/or services, new production processes, and new organizational structures. Organizations that are able to stimulate and improve the knowledge of their human capital are much more prepared to face today's rapid changes and innovate in the domain where they decide to invest and to compete. The success of an innovative product is notoriously connected to research activities and changing orientation. These two elements depend on the development of knowledge levels and the innovative efforts of knowledge workers (Carneiro, 2000).

Innovation processes are becoming more interactive more dependent on knowledge that is widely distributed therefore knowledge management is increasingly central. Swan et al. (1999) believe that the community-based model for knowledge management stimulates innovation better than the IT-led model for knowledge management. They believe that the community networking model influences innovation as knowledge for innovation is socially constructed and based on experience. Knowledge management initiatives that encourage active networking are the key to interactive innovation processes.

According to Perez-Bustamante (1999), innovation is a...